- NZD/USD is staying on the back foot at the start of the week.
- US Dollar Index stays in the positive territory above 92.30.
- Wall Street's main indexes remain on track to open flat.
Following last week's upsurge, the NZD/USD pair staged a technical correction and closed in the negative territory on Monday. After spending the Asian trading hours moving sideways in a relatively tight range on Tuesday, the pair extended its slide and was last seen losing 0.33% on a daily basis at 0.7114.
USD continues to gather strength
Earlier in the day, a sharp upsurge witnessed in the AUD/USD pair on the Reserve Bank of Australia's monetary policy announcements helped NZD/USD edge higher. However, AUD/USD quickly reversed its direction and is currently losing 0.6% on the day, making it difficult for positively-correlated NZD/USD to recover its losses.
Breaking: AUD/USD jumps as RBA keeps rates on-hold, maintains tapering plans.
On the other hand, the US Dollar Index, which slumped to a monthly low following the dismal August jobs report on Friday, is pushing higher for the second straight day on Tuesday and was last up 0.12% at 92.32.
In the absence of high-tier macroeconomic data releases, the cautious market mood seems to be helping the USD find demand. At the moment, major European equity indexes are down between 0.25% and 0.35% while the US stocks futures trade flat on the day.
During the American trading hours, the GDT auction from New Zealand will be looked upon for fresh impetus. The only noteworthy event in the US economic docket will be the 3-year Treasury note auction that will take place at 1700 GMT.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
EUR/USD flattens post-Fed rate cut
EUR/USD soared into a fresh high for September after the Federal Reserve surprised markets with a full 50 bps rate cut on Wednesday, pushing risk appetite into the high side and sending traders scrambling for the buy button.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.